In the daily charts, the short term directional indicators earlier
had already started drooping lower but with the sudden surge of the gold price,
it righted itself and just slightly off the overbought zone.
So the closing
play is important for setting the early tone for next week.
However, it must
really run higher because if the peak does not surpass the recent one, then a
divergence will be formed and will be doubly harsh if it failed to secure the
higher end of the ranges.
The medium term directional indicators have confirmed
cutting across and lower with yesterday’s closing but it is in the middle of attempting a
hat trick.
If it is successful, then it saved itself in the nick of time and
should really propel it towards 1300 next week.
If the closing is not a good
one, that is, lower than 1275, then what we are seeing could well be the dying
throes, a last ditch effort to pull higher.
The long term directional
indicators started leveling and with a slight wilting seen with the gap between
the channel and the indicator narrower somewhat.
The topside of the channel
around 1278-1279 will be a tough region to bash through, but once it does,
could see gold closing nearer the 1290’s.
The momentum/volatility indicators
were down 3 notches earlier but have gone back 5 notches higher, but are far away
from giving gold a fantastic run.
The positive bias whittled down at yesterday’s
closing but have now started widening again.
Interim supports are at 1273, 1261.50 & 1254 with minor
supports at 1270.60, 1260.60 & 1354.80.
Interim resistances are at 1290.50, 1298 & 1319 with
minor resistances at 1278.30, 1291.40 & 1305.90.
The daily/weekly trend changer points are at 1253.30/1284.75.
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